CHELSEA are set to battle Arsenal for Brazilian starlet Gabriel Moscardo, according to reports.
The Blues will reprise their interest in the Corinthians wonderkid having failed in an attempt to sign him in the summer.
Moscardo, 18, opted to stay at Corinthians until the end of the Brazilian season in December before assessing his options.
Chelsea were believed to have offered £18million, but the price has since gone up.
According to the Standard, Moscardo could now cost around £26m.
In addition to Chelsea and Arsenal, Liverpool and Barcelona are also believed to be keen.
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The Blues hired Corinthians' former chief scout Allyson Marins last year.
They have since swooped for a number of Brazilian youngsters.
In January they spent £18m on Andrey Santos from Vasco da Gama.
While they have also splashed out on Deivid Washington and Angelo Gabriel.
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Corinthians have their presidential election on November 25.
They will not entertain bids for their players before a new president is elected.
Midfielder Moscardo has so far made 23 first-team appearances for Corinthians.
He has also played for his country at youth level, debuting for Brazil's Under-23s at just 17.
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